Regional Planning at Midwest ISO. Mr. Clair Moeller Vice President, Transmission Asset Management

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1 Regional Planning at Midwest ISO Mr. Clair Moeller Vice President, Transmission Asset Management

2 Midwest ISO Planning Objectives Fundamental Goal The development of a comprehensive expansion plan that meets reliability needs, economic needs, and policy needs Midwest ISO Board of Director Planning Principles Make the benefits of a competitive energy market available to customers by providing access to the lowest possible electric energy costs Provide a transmission infrastructure that safeguards local and regional reliability Support state and federal renewable energy objectives by planning for access to all such resources (e.g. wind, biomass, demand-side management) Create a mechanism to ensure investment implementation occurs in a timely manner Develop a transmission system scenario model and make it available to state and federal energy policy makers to provide context and inform the choices they face 2

3 Balancing Generation and Transmission Investment Total Cost ($) Increased transfer capability, in conjunction with appropriately located generation, could allow for reduced reserve margins, and thus reduced overall cost Current reserve margins and congestion cost Today? Goal Minimum Total Cost:, energy, capacity and transmission Minimum Reserve Margin Limit H L Reserve Margin (%) Transfer Capability (MW) L H 3

4 Midwest ISO is Actively Engaged in Planning from Regional to National Levels RGOS I RGOS Phase I Scope: Develop transmission for mandates in in IA, IL, MN, WI; GW; Completion 3 rd rd Q 09 Participants: MISO Stakeholders, Regulators, Governors, PJM Lead: MISO, UMTDI (Phase I) I) and MGA Who s Watching: State Regulators, Governors Offices (UMTDI, MGA), FERC, State Transmission Authorities RGOS Phase II II MTEP & RGOS II Scope: Develop transmission for mandates or goals in in IL, IN, MI, MO, and OH; 22 GW (Phase I & II); Completion 4 th th Q 09 Participants: MISO Stakeholders, Regulators, Governors, PJM Lead: MISO and MGA Who s Watching: State Regulators, Governors Offices (MGA), FERC, State Transmission Authorities MTEP Scope: Develop MISO transmission; GW (20% scenario); ongoing Participants: MISO Stakeholders Lead: MISO Who s Watching: MISO Stakeholders EWITS JCSP JCSP Scope: Develop East. Int. transmission; GW (20% scenario) Participants: MISO, PJM, SPP, TVA, MAPP, Utilities Lead: MISO for Dept. of of Energy Who s Watching: Utilities, ISOs/RTOs EWITS Scope: Operating impacts of of JCSP; GW (20% scenario); Completion Aug 09 Participants: MISO, PJM, SPP, TVA, MAPP, Utilities, Enernex, Ventyx Lead: Enernex for Dept. of of Energy Who s Watching: Utilities, ISOs/RTOs RGOS = Regional Generation Outlet Study MTEP= Midwest ISO Transmission Expansion Plan JCSP = Joint Coordinated System Plan EWITS = Eastern Wind Integration and Transmission Study 4

5 Conceptual Progression of Plans 1 year Planning Horizons 20 year Queue RGOS JCSP 5

6 Queue Development Continues with near term upgrades 1 year Planning Horizons 20 year Queue 6

7 Until RGOS Aggregate Plans better inform 1 year Planning Horizons 20 year RGOS 7

8 Consistent with an inter-regional plan with a longer term view 1 year Planning Horizons 20 year JCSP 8

9 Conditions Precedent to Increased Transmission Build A robust business case for the plan Increased consensus around regional energy policy A regional tariff that matches who benefits with who pays over time Cost recovery mechanisms that reduce financial risk 9

10 Questions 10